Mudrex, a crypto investment platform founded by Indian entrepreneurs, has partnered with tax calculation platform ClearTax. Crypto exchanges operating in India now have a set of rules that they must adhere to in order to conduct their operations here. One of the important criteria that Indian crypto players are prioritizing to ensure is that their users pay the taxes they owe on their crypto profits. Calculating these taxes has been confusing and complicated for many, leading many to evade these crypto taxes in the past two years since these charges were levied.
Mudrex aims to ease the complexities associated with tax filing with this new partnership. The goal is to help users save time by not having to navigate the complexities of the crypto tax filing process. As part of this partnership, communities of traders and investors using Mudrex will have access to the tax calculation solutions offered by ClearTax. This access will simplify the process of generating detailed tax reports, leveraging automated tax calculation services and gaining valuable portfolio insights. Mudrex users will also be able to download VDA-compatible tax reports essential for filing their income tax returns (ITRs).
However, it should be noted that Mudrex users will have to pay a “nominal fee” to use the ClearTax suit despite this partnership. Speaking to Gadgets360, the company said that the ClearTax service plan starting at Rs. 299, it will cost less for Mudrex users. The exact price was not disclosed.
“Mudrex users are well positioned to seize this opportunity as a pivotal moment in their financial journey and further equip themselves with the tools and resources they need to efficiently meet their financial and compliance goals,” he said Avinash Polepally, Senior Director (Head of Consumer Business). ) to ClearTax for comment on the matter.
India's crypto community has time and again urged its circle members to comply with the payment of their crypto taxes, to demonstrate to the government that the crypto sector can follow legal discipline. In this way, they believe, the government could have more confidence in supporting the growth of this sector.
According to the Indian law taxed in 2022, profits generated from crypto activities are taxed at 30 percent. Additionally, one percent tax is deducted at source on every crypto transaction.
In a recent conversation with Gadgets360, another crypto tax calculation platform Taxnodes had said that tax compliance among the Indian crypto community is very low. Between 2022 and 2023, only 0.07 percent of cryptocurrency holders in India paid their crypto taxes, a report by Sweden-based technology research firm Divly claimed last year .
According to Taxnodes, the main reason for low tax compliance in India is lack of awareness among taxpayers.
